There is a small amount of fuzziness about if this really is a tax reduction, which can be comparatively simple for people to get behind, or even a tax reform. I believe that is unfortunate. Particularly with the business code, there’s a need for reform. We have not completed reform for 30 decades.
Which means in a part simplification and defensetax.com and clearing out lots of the mess which accumulates over three years of lobbying.tax cuts, we do not understand what the prices will be. You do not see themand you often don’t endure them for quite a while. I fear that we are likely to slide to a tax-cutting mode instead of tax-reform mode.
There are definite financial truths that individuals face that are rather important and hard. Then to reevaluate something which is, rather than taxation reform, a tax reduction, only flies in the face of these financial realities.
Which are a few of the financial realities we’re ignoring in this proposition? Which will be the missed opportunities?
It essentially says, let us increase the standard deduction, and it is not clear just where the mounts are going to be in the very low end. Thinking creatively about how to expand the range of the EITC and utilizing this as a lever for achieving redistribution could be much more strong and popular. It is not something that’s [occurring ], at least in what we’ve obtained up to now. I find a little bothersome.
Another thing which we are not hearing about a value-added tax. We are the only developed market that does not take action. We’ve got local and state sales taxes, but we do not have some broad-based value-added taxation. I believe most tax economists have thought it is a peculiar arrow to have retained from our quiver. There are disagreements about the role it would perform, whether it might supplement the taxation system we have or displace a part of it. Again, to not possess it within a huge tax reform is unsatisfactory to many people.